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Oris Johnson faced a growing revolt on Monday, including by Conservative MPs in the north of England, over the escalation of National Insurance to address the social care crisis.
Jake Berry, president of the Northern Research Group of Conservative MPs, emphasized that there was a problem of “intergenerational equity,” as people over retirement age, even if they are employed, do not pay National Insurance contributions, but workers are older. young yes.
He argued that it would be better to raise the income tax as it is a broader levy and would mean that wealthy retirees would also contribute to providing better care for people in old age.
Former Northern Powerhouse Minister Mr. Berry emphasized that conservatives had previously condemned the increase in IAS as an “employment tax.”
Speaking on BBC Radio 4’s Today show, he added: “It affects people who are working and it really doesn’t seem reasonable to me that people who go to work, in my own constituency in East Lancashire, probably with lower wages than many In other areas of the country, you will pay taxes to help people keep their homes in other parts of the country where house prices can be much higher.
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“If this is as important as we know it to be, let’s catch up with the British public, raise income tax… let’s not forget that many retirees will have higher incomes, especially former public sector workers, than people who are actually working. «
He also suggested that Health and Care Secretary Sajid Javid had previously opposed the NIC increase.
Former Cabinet Minister David Davis hopes to oppose the discussed NI increase unless it is clearly established how he will deal with the NHS backlog and hypothesized to improve social care, as he otherwise believes it would be the ‘worst tax’ possible”.
Haltemprice and Howden MP told The Standard: “The big problem with National Insurance is that it hurts jobs and growth.”
Former Secretary for Work and Pensions Esther McVey and Deputy Bishop of Auckland Dehenna Davison have also spoken out against using NI contributions to fund social care reforms.
Three former Conservative Chancellors, Lord Hammond, Lord Clarke and Lord Lamont, have raised concerns about NI’s hike proposal and many cabinet ministers and dozens of Conservative MPs are believed to oppose it.
However, Armed Forces Minister James Heappey argued that the government can still get its reforms through the Commons, with the prospect of a shakeup to keep ministers in line.
He told Sky News: “There is still a majority of 80, which gives the government the ability to deal with these very difficult issues and make no mistake, social care reform will be a very difficult issue to tackle.
“There will be no consensus on any of the options that the Chancellor may present in due course.
“But the Government, Parliament and the nation must deal with this.
“This has been something that many governments have avoided.
“Our social contract at this time, which stipulates that during your working life you pay taxes to support those who are retired at that moment and, in turn, those who are working while you are retired will support you – that social contact is broken in the moment.
“This reform is necessary.
“This is an extraordinarily difficult challenge. We have to prevent it from becoming a conflict between generations ”.
He also emphasized the need to “avoid this lazy characterization” that all retirees are rich.
Johnson, Chancellor Rishi Sunak and Javid have been discussing the details of the social care plan that Heappey confirmed will be announced in a few days.
The government was expected on Monday to reveal an additional £ 5.5bn to the NHS this year, including to help eliminate the backlog of appointments and treatments caused by the coronavirus pandemic.
But Downing Street sources said details of the social care plans were still being worked out Sunday night and a day for the announcement had not yet been confirmed.
The Sunday Times reported that lifetime contributions for care will be capped at approximately £ 80,000 and National Insurance will be increased by 1.25 per cent to raise between £ 10bn and £ 11bn per year.
But such an increase in taxes would be a violation of the 2019 Conservative Manifesto, which contained a personal “guarantee” from Mr. Johnson not to increase income tax, VAT, or national insurance.
Former Chancellor Lord Hammond told Times Radio: “I think that if the Government went ahead with the proposed increase in National Insurance contributions, breaking an overt commitment to fund the costs of care for the elderly with homes, I think it would lead to a very significant reaction «.
The conservative pair, who served as chancellor between 2016 and 2019, also said they would “vote against” the legislation in the House of Lords if the opportunity arises.
“Economically, politically, further expanding the state to protect private assets by asking the poor to subsidize the rich has to be wrong,” he said.
Lord Clarke, the Conservative Chancellor from 1993 to 1997, said there are “problems with national insurance” that need to be addressed when raising it.
He told LBC radio that he is “too biased towards those who pay less” and that “there is no reason” why people who continue to work after state retirement age should no longer pay it “.
Former Conservative Prime Minister Sir John Major warned against the measure targeting workers and employers, arguing that it is “regressive.”
Instead, he called for Johnson to take the “straight and honest” approach of raising general taxes.
Meanwhile, Sir Keir Starmer has said that the Labor Party would also oppose an increase in National Insurance contributions.
“We need more investment in the NHS and social care, but National Insurance, this way of doing it, just hits the low-income, the young and the businesses,” he told the Mirror.
“We do not agree that it is the right way to do it. Do we accept that we need more investment? Yes. Do we accept that NI is the right way to do it? No, we don’t.
Ministers have also privately acknowledged their opposition to the proposal, while Commons leader Jacob Rees-Mogg appeared to show disapproval in his “weekly wisdom” column in the Sunday Express.
He cited George Bush Sr.’s promise not to create new taxes in his successful bid to become president of the United States, before he raised taxes and lost the next election to Bill Clinton.
Rees-Mogg added: “The voters remembered these words after President Bush had forgotten them.”
But the resistance of ministers may be tempered by speculation about a looming cabinet shakeup.
And a second electoral promise may be broken in quick succession, with ministers preparing to announce that the triple lock on state pensions will be temporarily replaced by a “double lock”.
This is because wage distortions during the coronavirus crisis could mean that retirees would get a pay increase of up to eight percent, while workers face tougher times.
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